What is the difference between a firm and tentative closing date in a new-build contract?

Ontario new-construction purchase agreements typically use two types of closing dates, and the distinction matters for your legal rights.

A tentative occupancy date is an estimated date the builder sets at the time of signing. It can be changed multiple times before the builder converts it to a firm date. Builders must give written notice — usually at least 90 days in advance — before converting a tentative date to a firm one. The firm occupancy date is then the date on which you are expected to take possession of the unit or home.

Once a firm date is set, the builder can still change it, but fewer extensions are permitted and Tarion's delayed-closing warranty provides compensation if the firm date is missed without adequate notice. Compensation under that warranty has specific caps set by Tarion and adjusted periodically, so check the current schedule on Tarion's website.

Understanding which type of date you have at any given moment affects when you should arrange your mortgage, bridge financing, movers, and storage. Review your Tarion addendum with a lawyer before signing so you understand the full sequence of dates and your rights at each stage.